Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Economic & Monetary Community of Central Africa Financial Institutions (P099833) AFRICA | Africa | Finance & Markets Global Practice | IBRD/IDA | Specific Investment Loan | FY 2009 | Seq No: 12 | ARCHIVED on 01-Oct-2015 | ISR20872 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:04-Dec-2008 Effectiveness Date:27-Apr-2009 Planned Mid Term Review Date:25-Sep-2015 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2014 Revised Closing Date:29-Feb-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project aims to strengthen Central African regional institutions so that they can fulfill their mandates to encourage an expanded, better governed regional market, and a more transparent, better regulated and more competitive financial system. This will facilitate the re-utilization of oil revenues for investment in Central Africa. The project supports programs approved by the member governments designed to improve the efficiency of regional institutions. This will be accomplished by strengthening regional institutions. Project outcome indicators are given in Annex 3 and include increases in the percentage of foreign reserves managed regionally byBEAC, growth of investment in regional projects (primarily infrastructure investments), and increases in the percentage of banks meeting key prudential norms. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Strengthening the BEAC:(Cost $14.50 M) Encouraging Regional Investment Financing:(Cost $15.00 M) Improving Regional Economic Policy Coordination, Financial Sector Supervision and Financial Integrity:(Cost $14.00 M) Support for Project Implementation:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory 10/1/2015 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions Thanks to an acceleration of the implementation pace, the project had a satisfactory implementation progress over the last 6 months. As a result, the implementation progress rating was maintained at satisfactory. As the project has actually surpassed its disbursement target by reaching a disbursement rate of 37% for the last fiscal year and reaching a 21% disbursement rate in the months of July and August, some may make the case for highlighting satisfactory implementation progress. Over 20 activities are being implemented simultaneously for the 6 beneficiary institutions - BEAC, COBAC, CEMAC Commission, BDEAC, COSUMAF, and GABAC. The activities implemented during the last 3 years have resulted in the project meeting or surpassing 2 out of 3 of the key PDO performance indicators, 6 months ahead of the project’s closing date. The project has made good progress towards meeting its development objective “To strengthen Central African regional institutions so that they can fulfill their mandate.” The CEMAC Commission, COSUMAF, COBAC, GABAC, BDEAC and GABAC have all had their institutional capacity strengthened, some more successfully than others. This result is largely due to the dedication of the project coordination unit and some of the beneficiaries. This dedication is well exemplified by the CEMAC Commission responsible for the regional integration agenda. Despite having to be moved away from its headquarters in the Central African Republic, the CEMAC Commission managed to carry all the activities planned under the Project and to fully disburse the funds made available. Likewise, BEAC’s capacity and management systems have been significantly strengthened through the implementation of a wide range of activities, which brought about some positive changes. Although all the progress planned under the project was made, it is important to note that there is still more progress to be made by BEAC to further improve its performance. Now that robust systems are almost in place, the main challenge remains a culture of too much adherence to procedures and processes, as opposed to one where results are also taken into account while respecting the spirit of the procedures. This challenge will take time to address. This could be done through a follow-up operation, which is likely to be requested by the Borrower. The Knowledge generated through the project’s implementation, coupled with what has been developed through the FSAP, could help inform the design of the next assistance to BEAC and some of the other regional financial institutions. Moving forward, the project needs to maintain the accelerated implementation pace that took place over the last 6 months. To that end, the task team will provide all the implementation support required. This will allow key activities, which need to be implemented for this period, to generate an estimated US$ 5.2 million in disbursements by December 2015. 10/1/2015 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Risks Systematic Operations Risk-rating Tool 10/1/2015 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  High  High Other  --  Moderate  Moderate Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increase in percentage of foreign reserves managed regionally by BEAC (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 50.00 50.00 50.00 Date 11-Nov-2007 01-Dec-2014 01-Dec-2014 21-Sep-2015 PHINDPDOTBL  Growth of BDEAC financing of regional projects. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.20 15.70 19.00 15.00 Date 31-Dec-2007 01-Dec-2014 21-Sep-2015 29-Feb-2016 PHINDPDOTBL  Banks accounting for percentage increase of sector assets complying with agreed prudential norms by end of project. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 70.00 70.00 80.00 10/1/2015 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Date 03-May-2010 01-Dec-2014 21-Sep-2015 29-Feb-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Monetary programming conducted at regional level by Y4 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Computer model has Computer model has been completed, training At regional Value At national level been completed, of staff done. Testing is (CEMAC) level training is underway. underway. Date 30-Jun-2008 01-Dec-2014 21-Sep-2015 29-Feb-2016 PHINDIRITBL  Central Bank/Government paper issued by Y3 (none issued now) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Cameroon, Gabon and Cameroon, Gabon and Central Tchad have all Tchad have all Bank/Governm Value None issued now succesfully issued succesfully issued ent paper paper. paper. issued by Y3 Date 31-Dec-2007 16-Jun-2014 21-Sep-2015 29-Feb-2016 PHINDIRITBL  Cross-border electronic payments transactions in wholesale and retail systems (SYGMA and SYSTAC) cumulative increase of 33% by Y3 and 61% by Y5. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (SYGMA and Cross-border payment (SYGMA and SYSTAC) Cross-border payment SYSTAC) are said to have Value cumulative increase of are said to have cumulative increased (figures were 33% by Y3 increased by over 70%. increase of not available) 61% by Y5. Date 31-Dec-2011 01-Dec-2014 21-Sep-2015 29-Feb-2016 10/1/2015 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) PHINDIRITBL  Revised and applied BDEAC's policies, procedures and internal controls by Y3 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Outdated policies and Procedures are being Procedures are being Revised and Value procedures developed. developed. applied by Y3 Date 30-Sep-2008 01-Dec-2014 21-Sep-2015 29-Feb-2016 PHINDIRITBL  All projects evaluated by BDEAC according to new policies by Y3. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The new policy is being The new policy is not finalized. New BDEAC All projects Value Non-standard policies yet finalized. management is keen to evaluated using it. Date 30-Jun-2008 16-Jun-2014 21-Sep-2015 29-Feb-2016 PHINDIRITBL  Improved portfolio performance of BDEAC, as measured by increased ratio of annual disbursements/commitments in the preceding year from 43% in 2007 to 70% by Y3 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43% in 2007 60% 60% 70% by Y3 Date 31-Dec-2007 01-Dec-2014 21-Sep-2015 29-Feb-2016 PHINDIRITBL  New BDEAC's MIS, including accounting system, substantially in place by mid-term and generating financial reports in line with international standards by Y5 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In place by mid- term and Part of the system is in Part of the system is in generating place and should be place and should be financial reports Value Lack of MIS completed by Project's completed by Project's in line with end. end. international standards by Y5 Date 30-Jun-2008 01-Dec-2014 21-Sep-2015 29-Feb-2016 10/1/2015 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) PHINDIRITBL  Updated accounting plan for banks in place and used by banks by Y3 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New accounting for In place and cross border and Value Outdated accounting plan -- used by banks consolidated financial by Y3 statements in place. Date 30-Jun-2008 04-Oct-2013 21-Sep-2015 29-Feb-2016 PHINDIRITBL  Plan for application of microfinance regulatory framework and supervision system in place and applied by mid-term review (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In place and Value Not applied Plan is in place. Plan is in place. applied by mid- term review Date 30-Jun-2008 01-Dec-2014 21-Sep-2015 29-Feb-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P099833 IDA-45290 Effective XDR 20.40 20.40 0.00 14.41 5.99 71% P099833 IDA-H4340 Effective XDR 11.50 11.50 0.00 9.27 2.23 81% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P099833 IDA-45290 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 29-Feb-2016 P099833 IDA-H4340 Effective 04-Dec-2008 27-Jan-2009 27-Apr-2009 30-Jun-2014 29-Feb-2016 Cumulative Disbursements 10/1/2015 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Economic & Monetary Community of Central Africa Financial Institutions (P099833) Restructuring History Level 2 Approved on 18-Jun-2014 Related Project(s) There are no related projects. 10/1/2015 Page 8 of 8 Public Disclosure Copy